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Why customers often say no!


 Who looks forward to change?

  Your customers and clients?
Drivers of confusion


Accelerating rates of economic change


   Increasing levels of competition


      Globalisation is pervasive
Drivers of confusion


   Rapid technical change


 Business models collapsing


Workforce diversity amplified
Drivers of confusion


         Resource shortages


Society transitioning from industrial to
                knowledge


    Market turbulence increasing
Drivers of confusion

The rise and influence of special interest
                   groups


 Market paradoxes – transparency and
              complexity


 Social and economic dividends at the
               same time?
Customers “Erect” Barriers
  To Slow Down Change


         Usage
         Value
          Risk
        Tradition
         Image
Corporates often simply do not want to
               commit


              Expertise
             Operations
             Resources
             Regulations
            Market access
Usage barrier

They will say..

    The new process / product is not compatible
     with existing work flows, practices, systems,
     procedures and habits.

    The innovations will often require significant
     changes to work practices.
Strategies for the usage barrier

We could…

 Take a systems perspective, take the time to
  examine how the process or product will
  impact on the whole organisation.

 Integrate - get to the original equipment
  manufacturers to install / use before the
  finished product gets to the consumer.
Value barrier

They will say….

I can’t see the “value” when I look at the “price”
   compared with your claimed performance

The “seeing” often means intangibles as well as,
Dollars and cents
Strategies for the value barrier

We could…

   Demonstrate the performance is
   superior (the before and after chart)
   Add further value (Non price)
Before and after
Risk barrier

They could say….

    It’s too risky – who else has “it?” – I’m not
    sure.
    I need more time and information to make
    a decision – I just don’t know.
    I don’t want to be responsible for the
    decision.
Strategies for the risk barrier

We could…

   Conduct a trial.
   Supply testimonials – who else (a third
   party) often helps.
   Package the “new” as a system – hide
   the change in another system.
Tradition barrier

They could say…
  We have always done it this way.
  Why change, we are doing a good job?
  Our systems and procedures are robust.

   The greater the change, the higher the tradition
 barriers and the greater the resistance. When a new
   process or product is introduced, there is always
                 resistance to change.
Strategies for the tradition barrier

We could…

   Try to understand and respect traditions
    & that fear of change is real.
   Educate.
   Engage opinion leaders.
Image barrier
They could say…
     What will people think?.
     We have never done this before, we might confuse
      our clients. Isn’t their job?

Barriers are readily thrown up when it comes to image.
  Image barriers are traditionally built from social
  taboos, from stigmas associated with new
  products/services or from deep seated psychological
  forces that may be aroused by innovation.
Strategies for the image barrier


We could…


   Correct the image - change the
   stereotype.
   Create an image - symbols.
   Borrow an image.
Stillness


        Understand the drivers
    Empathise with the indecision
            Take your time


You are there for them, not to sell them
                something

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Dr Marcus Powe Rejection,Why Customers Often Say No

  • 1. Why customers often say no! Who looks forward to change? Your customers and clients?
  • 2. Drivers of confusion Accelerating rates of economic change Increasing levels of competition Globalisation is pervasive
  • 3. Drivers of confusion Rapid technical change Business models collapsing Workforce diversity amplified
  • 4. Drivers of confusion Resource shortages Society transitioning from industrial to knowledge Market turbulence increasing
  • 5. Drivers of confusion The rise and influence of special interest groups Market paradoxes – transparency and complexity Social and economic dividends at the same time?
  • 6. Customers “Erect” Barriers To Slow Down Change Usage Value Risk Tradition Image
  • 7. Corporates often simply do not want to commit Expertise Operations Resources Regulations Market access
  • 8. Usage barrier They will say.. The new process / product is not compatible with existing work flows, practices, systems, procedures and habits. The innovations will often require significant changes to work practices.
  • 9. Strategies for the usage barrier We could… Take a systems perspective, take the time to examine how the process or product will impact on the whole organisation. Integrate - get to the original equipment manufacturers to install / use before the finished product gets to the consumer.
  • 10. Value barrier They will say…. I can’t see the “value” when I look at the “price” compared with your claimed performance The “seeing” often means intangibles as well as, Dollars and cents
  • 11. Strategies for the value barrier We could… Demonstrate the performance is superior (the before and after chart) Add further value (Non price)
  • 13. Risk barrier They could say…. It’s too risky – who else has “it?” – I’m not sure. I need more time and information to make a decision – I just don’t know. I don’t want to be responsible for the decision.
  • 14. Strategies for the risk barrier We could… Conduct a trial. Supply testimonials – who else (a third party) often helps. Package the “new” as a system – hide the change in another system.
  • 15. Tradition barrier They could say… We have always done it this way. Why change, we are doing a good job? Our systems and procedures are robust. The greater the change, the higher the tradition barriers and the greater the resistance. When a new process or product is introduced, there is always resistance to change.
  • 16. Strategies for the tradition barrier We could… Try to understand and respect traditions & that fear of change is real. Educate. Engage opinion leaders.
  • 17. Image barrier They could say… What will people think?. We have never done this before, we might confuse our clients. Isn’t their job? Barriers are readily thrown up when it comes to image. Image barriers are traditionally built from social taboos, from stigmas associated with new products/services or from deep seated psychological forces that may be aroused by innovation.
  • 18. Strategies for the image barrier We could… Correct the image - change the stereotype. Create an image - symbols. Borrow an image.
  • 19. Stillness Understand the drivers Empathise with the indecision Take your time You are there for them, not to sell them something